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ECB Draghi: Euro area economy in period of 'protracted weakness'

Thu, Sep 12, 2019 - 9:18 PM

European Central Bank President Mario Draghi said on Thursday that the euro zone economy was in a period of "protracted" economic weakness, with inflation staying low and the balance of risks tilted towards the downside.

Bloomberg

[FRANKFURT] European Central Bank President Mario Draghi said on Thursday that the euro zone economy was in a period of "protracted" economic weakness, with inflation staying low and the balance of risks tilted towards the downside.

"Incoming information since the last Governing Council meeting indicates a more protracted weakness of the euro area economy, the persistence of prominent downside risks and muted inflationary pressures," Mr Draghi told reporters after a policy meeting.

Nevertheless, he said the bank expected the bloc's economy to eke out "moderate but positive" growth in the July-September quarter.

Mr Draghi urged governments with budget surpluses to step up and boost the eurozone's flagging economy at a time of stiff headwinds threatening the single currency area's outlook.